JOHANNESBURG (miningweekly.com) – The feasibility study for Phase 1 of Aim-quoted Armadale Capital’s Democratic Republic of Congo-based Mpokoto gold project has revealed “robust” project fundamentals, providing the foundation with cause to hold further funding discussions.
The preliminary results of the feasibility study for the $25.15-million, 24 900 oz/y project, based in Katanga province, demonstrated a low-cost gold development project with “attractive fundamentals”.
The Africa-focused investment company would now move to finalise the funding opportunities with potential funder and partner A-MCS, after which construction could start.
“The results of the study demonstrate that Mpokoto is a commercially valuable gold development project, confirming its technical viability, as well as offering attractive returns and near-term production potential,” said Armadale chairperson Peter Marks .
The study outlined potential long-term aggregate revenue of $138.6-million throughout Phase 1, with average yearly revenues of $30.80-million, at a gold price of $1 250/oz and an average yearly pretax net operating profit of $11.14-million.
The pretax and royalties net present value (NPV) for Phase 1, based on a 5% discount, was expected to reach $19.1-million, while the expanded scoping study showed a pretax NPV for Phase 2 of about $24-million.